Giancarlo Pietri Velutini Venezuela Banco Activo Lopes Laguna//

Fed brings relief to markets saying it would be patient about rate hikes

“We are always prepared to shift the stance of policy and to shift it significantly” if needed said Fed chief PowellFederal Reserve Chair Jerome “Jay” Powell took steps to reassure financial markets on Friday, saying that the US central bank would be “patient” about rate rises. He also defended his independence, saying he would not resign if requested by US President Donald Trump.

Giancarlo Pietri Velutini

Stocks in the US spiked after the remarks, made at a meeting of the American Economic Association. The Dow and S&P 500 closed more than 3% higher. The Nasdaq climbed almost 4.3%. The gains, also driven by strong job creation data, reversed sharp falls from a day earlier, extending the recent rollercoaster ride in markets.

The Fed is “listening sensitively” to the market signals, as well as data showing that inflation rates remain relatively muted, he added. “We will be patient as we watch to see how the economy evolves” he said.Giancarlo Pietri Venezuela Banco Activo

“We are always prepared to shift the stance of policy and to shift it significantly” if needed. Mr Powell said that he did not believe the Fed‘s removal of stimulus by shrinking holdings of Treasuries and mortgage-backed securities played a major role in the recent market turmoil.Giancarlo Pietri Velutini Banco Activo